OK, now we know why we usually leave the puzzles to Linda: mine are too easy! As several folks correctly noted the photo in my yard was an example of the "dog vomit fungus" or, more correctly "dog vomit slime mold" Fuligo septica. Either way, it’s fairly disgusting and fairly common. My expereince has been it that it often shows up shortly after I lay dowm some fresh mulch (ground pine bark in this case) and then we get rain and warm temps. Although sometimes it shows up when I give our dogs too many treats… Hmmm…
Thanks to all those who chimed in with comments and links. Here’s one more link with some interesting tidbits.
http://botit.botany.wisc.edu/toms_fungi/june99.html